Means Testing

Under Means Testing some state benefits are reserved for people who have limited income. This may be because they're not working or are in poorly-paid employment.

Before these benefits are allocated to applicants, their personal financial position is examined to ensure they're 'poor enough' to receive help.

This process of 'means testing' is a way of rationing public funds, but it can also be an expensive process to administer.

Last Updated: January 2008 © Moneyextra.com

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